Latest news with #BaseRate
New Straits Times
10-07-2025
- Business
- New Straits Times
Lower OPR brings RM864 annual relief to homeowners
KUALA LUMPUR: A 25-basis-point reduction in the Overnight Policy Rate (OPR) to 2.75 per cent is expected to ease the financial burden on homebuyers with floating-rate mortgages, says the Muslim Real Estate Consultants Association of Malaysia. Its president Idzwan Izuddin Shah Ishak said that local banks' floating interest rates were closely linked to the OPR through the Base Rate (BR) or Standardised Base Rate (SBR). "If the OPR is reduced by 0.25 per cent, the BR or SBR generally follows suit. As a result, the interest charged on loans will also decrease within weeks of Bank Negara Malaysia's announcement," he told Sinar Harian. He said that for a 30-year mortgage of RM500,000, a 0.25 per cent cut could reduce the monthly instalment by around RM72. "At present, the average interest rate for such a loan is about 4 per cent, which translates to a monthly repayment of RM2,387. After the OPR reduction, this could drop to approximately RM2,315 — a monthly saving of RM72 or RM864 a year." According to him, as the BR or SBR decreases in tandem with the OPR, floating interest rates fall, resulting in lower monthly payments. Borrowers might also opt to maintain their current repayments in order to shorten the loan tenure, he added. However, Idzwan said that fixed-rate loans would not see immediate changes, as rates are only adjusted during repricing at maturity. He said that a low-OPR environment could prompt banks to offer more attractive refinancing options. Lower borrowing costs, he added, were expected to stimulate demand over the next six to 12 months, particularly among first-time buyers and upgraders. "The reduction in financing costs will likely encourage more property purchases. BIMB Research has projected that heightened consumer activity could boost GDP by 0.2 per cent, bringing growth to around 4.6 per cent," Idzwan said. He said that house prices were likely to remain stable, with moderate increases anticipated in the affordable housing segment.
Daily Mirror
16-05-2025
- Business
- Daily Mirror
Martin Lewis tells savers the one thing they need to do 'today' to protect money
The Bank of England cut the base rate from 4.5% to 4.2% last week - and savings providers are usually quick to cut the interest rates they have on offer at the same time Money Saving Expert Martin Lewis has issued a stark warning to Brits considering fixed rate savings accounts, urging them to act "today". Following the Bank of England's base rate cut from 4.5% to 4.2% last week, Martin highlighted that savings providers are likely to follow suit and reduce their interest rates swiftly. He advised those who have been hesitant about fixing an interest rate to make their move promptly, as he believes returns are unlikely to improve. Speaking on his Money Podcast on Sunday, Mr Lewis told listeners: "We're going to see easy access rates, both the ones being offered and your existing accounts, coming down. "Fixed rate savings tend to factor in future interest rates, so they're already lower than the easy access interest rates as they've factored in much of the [Bank of England] cuts. But here's the key thing. If you're looking to fix, I would be fixing today." Elaborating on how savings providers manage fixed rate savings accounts, Mr Lewis explained that they offer a set tranche – for instance, £5million at 4.6%. Once that amount is reached, the provider will reassess and potentially adjust the fixed rate based on new market conditions. Mr Lewis pointed out: "So, you may be able to get in now before the rate drops and they reassess based on the new information. "And of course, because it's a fix, your rate is locked in." Fixed rate savings accounts offer savers the chance to lock in an interest rate for a defined period, typically from one to five years, although they generally do not permit withdrawals until the term concludes. Financial expert Mr Lewis advised: "The safest bet is to [fix] today. And also as a general point, analysts are predicting that interest rates are going to come down quite substantially over the next year. "If you're risk-averse to rates going much lower and you don't need access to the money, then the safest thing to do if you've got savings is to lock it away in the highest rate fix you can get right now, which will protect you from interest rates dropping." Furthermore, he warned: "I can't promise anything, we live in such an uncertain world, but the risk-averse thing now is if you've got savings and you want to keep a higher rate, would be to lock them in on a fix." The financial markets anticipate at least two additional cuts to the Bank of England Base Rate before this end of the year, reports the Express. Moneyfactscompare lists the leading fixed rate options currently available. Top one-year fixed rates FirstSave's 1 Year Fixed Rate Bond - 4.5% AER/gross Close Brothers Savings' Fixed Rate Bond - 4.47% AER/gross Cynergy Bank's Fixed Rate Bond - 4.4% AER/gross Top two-year fixed rates GB Bank's 2 Year Fixed Rate Bond - 4.43% AER/gross Secure Trust Bank's 2 Year Fixed Rate Bond ( - 4.42% AER/gross Oxbury Bank's Personal 2 Year Bond Account (Issue 28) - 4.4% AER/gross Top five-year fixed rates Birmingham Bank's 5 Year Fixed Rate Bond (Issue 20) - 4.43% AER/gross Secure Trust Bank's 5 Year Fixed Rate Bond ( - 4.42% AER/gross GB Bank's 5 Year Fixed Rate Bond - 4.4% AER/gross.
Zawya
08-05-2025
- Business
- Zawya
CBUAE maintains interest rates unchanged at 4.40%
ABU DHABI: The Central Bank of the UAE (CBUAE) has decided to maintain the Base Rate applicable to the Overnight Deposit Facility (ODF) at 4.40%. This decision was taken following the US Federal Reserve's announcement today to keep the Interest Rate on Reserve Balances (IORB) unchanged. The CBUAE has also decided to maintain the interest rate applicable to borrowing short-term liquidity from the CBUAE at 50 basis points above the Base Rate for all standing credit facilities. The Base Rate, which is anchored to the US Federal Reserve's IORB, signals the general stance of monetary policy and provides an effective floor for overnight money market interest rates in the UAE.
Daily Mirror
21-04-2025
- Business
- Daily Mirror
'Trapped' pensioner who worked all his life faces terrifying question
Chris Dodson says he is living in 'endless fear' that his rent will be increased again after more than £2,000 in hikes in the past three years - as peers call for more action Chris Dodson says he is living in 'endless fear' that his rent will be increased again after more than £2,000 in hikes in the past three years. The 68-year-old, who lives alone in South East of England, receives around £1,600 per month from state and work pensions but £995 of it is 'swallowed up' in rent. 'My rent has increased relentlessly over the past three years by over £2000,' he told The Mirror. 'The effect is dramatic, half my income is swallowed up. The rest just isn't enough to cover everything else and most months I end up broke.' Chris previously lost his home due to mortgage struggles in 2008 and now rents the property after a fund bought it during the crash. He has faced issues such as high energy bills and repairs that have not been done, including a broken gate that makes him feel unprotected. He said: 'There is no way out, I am trapped. I can't save as there is nothing left to put by. Even if I was offered another property, I have no money to move or pay for those extras you need when moving. 'Unexpected expenses are a major worry. I can't plan for the future just scraping by each over the horizon the endless fear of yet another rent rise. It is pitiless. I think of the 46 years I worked, paying all my dues and wonder what it was for.' The Government is under pressure to amend its renters' rights laws to stop tenants being forced out by huge rent hikes. Peers across political parties have joined forces to demand rent increases be limited to the lowest of either inflation or wage growth, or alternatively the Bank of England Base Rate. Private renting increased by 8.1% in the 12 months to February, more than triple the current level of general inflation. The government's Renters' Rights Bill, which is now passing through the House of Lords, will be scrutinised at committee stage from Tuesday. Ahead of this, peers have supported amendments to introduce limits on how much landlords can hike rents on their tenants. Baroness Janke, a Liberal Democrat Peer, has tabled an amendment which would limit rent rises to the Bank of England Base Rate, with support from Baroness Jones of the Greens. Lord Best, a crossbench peer and former chief executive of the Joseph Rowntree Foundation, has tabled an amendment to limit rent rises to Consumer Price Inflation or wage growth, whatever is lower. This amendment would allow landlords to reset the rent to the market rate every four years and is supported by Tory peer Lord Young of Cookham and Lib Dem peers Baroness Thornhill and Baroness Grender. A maximum of four Peers can support any one amendment. A similar amendment was tabled, and rejected, when the renters' rights legislation passed through the Commons. Generation Rent, who surveyed nearly a 1,000 of its supporters in the Autumn, found that more than three in five (61%) renters said their landlord had asked them to pay a higher rent in the previous 12 months. Almost a quarter (24%) of respondents said they received a rent hike of over £100, compared to just 9% in a similar survey in July 2022. Meanwhile, respondents reported spending an average of 39% of their income on rent. Labour 's renters' rights legislation will finally bring an end to section 21 no-fault evictions - a promise first made by the Tories in 2019 which they failed to deliver on. The notices, which are considered a major driver of homelessness, allow landlords to evict renters either after a fixed term tenancy ends or during a tenancy with no fixed end date. Campaigners have hailed the ban but warn that large rent hikes could effectively still lead to no-fault evictions. Ben Twomey, Chief Executive at Generation Rent, said: 'Everyone needs a safe, secure and affordable home, it's the foundation of our lives. While price caps rightly exist for our energy and water bills, there is nothing to stop a landlord suddenly hiking the cost of someone's home. Unchecked rent hikes are forcing people into poverty and homelessness." He added: 'The ending of Section 21 'no fault' evictions is a milestone to be celebrated after a decade of Generation Rent campaigning. But some landlords will inevitably start using unaffordable rent hikes as 'no fault' evictions in all but name, dampening the impact of this major reform.' An MHCLG spokesman said: 'Our Renters' Rights Bill will deliver a long overdue transformation of private renting by strengthening tenants' rights and banning section 21 'no fault' evictions. We do not support rent controls. We are taking action to cap advance payments to one month's rent, end unfair bidding wars, and give tenants stronger powers to challenge excessive rent hikes. 'Boosting supply is the most effective way of improving affordability for renters, and we will deliver this by building 1.5 million homes as part of our Plan for Change.'
